Correlation Between GSD Holding and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Koza Anadolu at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GSD Holding and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSD Holding AS and Koza Anadolu Metal, you can compare the effects of market volatilities on GSD Holding and Koza Anadolu and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GSD Holding with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Koza Anadolu.
Diversification Opportunities for GSD Holding and Koza Anadolu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GSD and Koza is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal and GSD Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GSD Holding AS are associated (or correlated) with Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of GSD Holding i.e., GSD Holding and Koza Anadolu go up and down completely randomly.
Pair Corralation between GSD Holding and Koza Anadolu
Assuming the 90 days trading horizon GSD Holding is expected to generate 1.55 times less return on investment than Koza Anadolu. But when comparing it to its historical volatility, GSD Holding AS is 1.79 times less risky than Koza Anadolu. It trades about 0.09 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,310 in Koza Anadolu Metal on August 28, 2024 and sell it today you would earn a total of 810.00 from holding Koza Anadolu Metal or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSD Holding AS vs. Koza Anadolu Metal
Performance |
| Timeline |
| GSD Holding AS |
| Koza Anadolu Metal |
GSD Holding and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSD Holding and Koza Anadolu
The main advantage of trading using opposite GSD Holding and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Koza Anadolu can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| GSD Holding vs. Koza Anadolu Metal | GSD Holding vs. MEGA METAL | GSD Holding vs. Trabzonspor Sportif Yatirim | GSD Holding vs. Bms Birlesik Metal |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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